TSX Today: What to Watch for in Stocks on Wednesday, January 25

TSX investors may want to keep a close eye on the Bank of Canada’s monetary policy event today.

| More on:
tsx today

The Canadian stock market remained volatile on Tuesday, as investors awaited the Bank of Canada’s interest rate decision. After falling by 129 points from its previous closing during the intraday trading yesterday, a recovery in metal and mining stocks later during the volatile session helped the S&P/TSX Composite Index settle at 20,630 with just two points drop for the day.

Despite gains in mining and consumer non-cyclicals market sectors, big declines in the shares of energy and consumer cyclicals companies pressured the TSX benchmark on January 24.

Top TSX Composite movers and active stocks

Shares of Magna International (TSX:MG) plunged by 7.2% to settle at $81.25 per share, making it the worst-performing TSX Composite component for the day.

This selloff in MG stock came after the Aurora-headquartered automotive supplier updated its 2022 outlook to reflect preliminary results for the year. Magna told investors that its 2022 adjusted EBIT (earnings before interest and taxes) margin stood at 4.3% based on the preliminary results, missing its guided range of 4.8% to 5%. The company blamed various factors, including higher labour costs and other operational inefficiencies, for its weak EBIT margin. After this selloff, MG stock now trades with 6.8% gains in January after losing nearly 26% of its value last year.

Ritchie Bros Auctioneers, Vermilion Energy, and Cronos Group were also among the worst-performing Canadian stocks yesterday, as they slipped by at least 3.5% each.

On the positive side, Interfor, Brookfield Business Partners, West Fraser Timber, and Equinox Gold climbed by at least 2.5% each, making them the top performers on the Toronto Stock Exchange.

Based on their daily trade volume, Enbridge, Manulife Financial, Shaw Communications, and Tourmaline Oil were the most active stocks for the day.

TSX today

Commodity prices across the board were trading on a weak note early Wednesday morning, which could take the resource-heavy TSX index lower at the open today. The Canadian central bank is set to announce its latest interest rate decision and release the monetary policy report this morning, which should give further direction to stocks. Besides that, energy investors may also want to keep a close eye on the weekly crude oil stockpiles data from the U.S. market.

On the corporate events front, gold miner NovaGold Resources will release its 2022 earnings reports after the market closing bell on January 25.

Market movers on the TSX today

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

The Motley Fool recommends Enbridge, Magna International, Ritchie Bros. Auctioneers, Vermilion Energy, and West Fraser Timber. The Motley Fool has a disclosure policy. Fool contributor Jitendra Parashar has no position in any of the stocks mentioned.

More on Metals and Mining Stocks

silver metal
Metals and Mining Stocks

Buy the Dip: 1 Dividend Stock Due to Shine

This dividend stock's dividend just rose higher as the price of silver dropped, but don't let that scare you off…

Read more »

Metals and Mining Stocks

Iron Stomach? 2 Riskier Stocks That Could Pay Off Big Time in the Future

Two TSX stocks could deliver greater earnings to investors with higher risk appetites.

Read more »

Gold bullion on a chart
Metals and Mining Stocks

This Gold Stock Just Dipped 5%: Time to Buy?

This gold stock has been rising higher and higher but recently went through a 5% dip in share price. So,…

Read more »

Gold king in chess game face with the another silver team on black background (Concept for company strategy, business victory or decision)
Stocks for Beginners

Pan American Silver: Buy, Sell, or Hold?

PAAS stock (TSX:PAAS) is up 44% in the last year alone! But it's not all down to the rise in…

Read more »

Nuclear power station cooling tower
Metals and Mining Stocks

1 Canadian Mining Stock Worth a Long-Term Investment

Strong fundamentals should continue to boost Cameco stock's long-term outlook, as the nuclear industry's momentum continues.

Read more »

Super sized rock trucks take a load of platinum rich rock into the crusher.
Metals and Mining Stocks

Lundin Mining Stock: Buy, Sell, or Hold?

Lundin (TSX:LUN) stock saw its shares surge this last year with the price of copper, and more strong guidance could…

Read more »

grow dividends
Metals and Mining Stocks

Invest $5,000 in This Dividend Stock for $1,060 in Passive Income

Franco Nevada stock trades at a 20% discount to consensus price target estimates while offering investors a tasty yield of…

Read more »

Growth from coins
Stocks for Beginners

Prediction: These Could Be the Best-Performing Value Stocks Through 2030

These stocks should absolutely surge through 2030 and beyond, with demand rising and supply only decreasing.

Read more »